Advisory Center for Affordable Settlements & Housing

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Definitions of Housing Costs Over Income

Housing costs can be a substantial financial burden to households, especially for lowincome households. The median of the ratio of housing cost over income gives an indication of the financial pressure that households face due to housing costs. Another common measure for housing affordability used here is the housing cost overburden rate”, which measures the proportion of households or population that spend more than 40% (following Eurostat methodology) of their disposable income on housing cost. For policy measures aiming to support households with housing costs refer to indicators PH2, PH3, and PH4.

 


 

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